Burmis Drills Successful Oil Well at Pembina

Burmis Energy has revealed the initial results from the completion of its second Nisku oil well in the Pembina area of west central Alberta, Canada. The well, located at 14-22-49-8W5M, flowed light (41 degrees API) oil at a restricted clean-up rate of 383 barrels per day plus associated sour solution gas at a final flowing wellhead pressure of approximately 4,900 kPa during a 24 hour production test. The well has now been shut-in for pressure build-up. Burmis has a 37.5 percent working interest in the well. This well is a follow-up to the Company's previously announced successful Nisku oil well at 4-27-49-8W5M in which Burmis has a 75 percent before payout (37.5 percent after payout) working interest.

Burmis will tie-in both of these wells in the first quarter of 2004 by constructing individual flow-lines from each well to a common header and participating in two new six inch group flow-lines into the 11-14-50-8W5M oil battery operated by a Canadian midstream company. This oil battery is being expanded to handle approximately 9,400 barrels of oil per day by the end of the first quarter of 2004.

Production of sour solution gas in the area is constrained at the present time by the availability of sour gas processing capacity. There are plans to increase the sour gas processing capacity in the area and Burmis is involved in negotiations to acquire sour gas processing capacity for these two new wells in the proposed expanded facilities.